Limuru Tea Company says it expects to record a decline in net profits for the financial year ended 31st December 2020 due to rising cost of production and a global downturn.
“The board is of the view that the estimated decrease for the period is due to lower tea prices that were realized in 2020 on account of the rising cost of production and a global downturn triggered by the COVID-19 pandemic,” said Alison I.N Kariuki, the listed firm’s Company Secretary.
Limuru Tea Plc- Statement to Shareholders (Profit Warning Announcement). pic.twitter.com/wICFmcGMxA
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The listed firm is an outgrower to Unilever Tea Kenya Limited. It posted a pre-tax loss of Ksh 11 million for its unaudited results in the first half of 2020 compared to KSh 26 million last year.
At the end of the period ended 31st December 2019, Limuru Tea Plc posted a pre-tax profit of KSh 3 Million compared to KSh 3.7 Million the year prior.